Fosun Pharma Announces Proportional Capital Increase in Joint Venture Fosun Kite via Debt-to-Equity Conversion

Intelligent Finance APP News, Fosun Pharmaceutical (600196.SH) announced that on July 19, 2024, its holding subsidiary, Fosun Pharmaceutical Industry, entered into a "Debt-to-Equity Conversion and Capital Increase Agreement" with Kite Pharma and Fosun Kite. Fosun Pharmaceutical Industry and Kite Pharma plan to convert their respective outstanding claims of US$28.5 million against the joint venture Fosun Kite into equity, thereby making a proportional capital increase in Fosun Kite. Among this: the principal amount of the outstanding claims of US$28.5 million held by Fosun Pharmaceutical Industry and Kite Pharma against Fosun Kite will be converted into an additional registered capital of US$28.5 million for Fosun Kite.

It is reported that Fosun Kite, a joint venture of the group, is mainly engaged in the research and development, production, and commercialization of tumor immunotherapy cell therapy products. The proceeds from this capital increase will be mainly used for the commercialization of Fosun Kite's products and investment in its R&D pipeline.